The formula for what to charge.
- B2B
- Marketing
It is…
You only charge if you can sell at that price.
Confused?
Let me explain.
Rolls Royce asks ludicrously high prices for their cars. Because they can sell at those prices.
In fact, their customers feel good paying those prices.
But do you know why? I’ll explain in second.
But first, I want you to understand this.
Marketing is story telling.
The more effective you are at marketing, the more you can charge. Not selling but marketing.
But how do you do that?
It goes back to what Robert Collier, a marketing pioneer, wrote in The Robert Collier Letter Book. He said…
“Always enter the conversation already taking place in the customer's mind“
Marketing is rooted in human psychology and behaviour.
Mr Smith buys a Rolls Royce not because he wants to impress his next door neighbours. That’s something a Range Rover would do.
He buys it to look good in front of potential business partners and investors.
For him, it's an investment.
Royce Rolls know this about Mr Smith.
That’s why their marketing is based on powerful stories of luxury, exclusivity and status. It’s rooted in their DNA.
Because that’s what their customers are thinking about. It’s what they want to hear.
Why I’m telling you this?
It’s because everyone business has a story.
Whether what you sell is high ticket or low ticket there is a story about you and what you sell that needs to be told.
I want you to stop and think about this for a minute.
I know some of your competitors are charging more than you. But do you know why?
You might say that you don’t know. But you do. And I bet there is something about them that stands out.
Something that makes people ignore the price.
- Is it their customer service?
- Is it the way they talk about their service?
- Is it because they have been in business longer than you?
- Is it because of the way they market and sell themselves?
Whatever thought came to mind is the story of their business. You can call it branding. USP. Or you can call it whatever you like.
But my point is this:
If you want to persuade anyone do anything, you need a story. And to understand stories, you need understand human behaviour and psychology.
When you do, you’ll be the most valuable person in your business. You’ll know how to…
- Create offers,
- Market them and
- Sell them.
How can you put this into action?
Ask yourself…
- What is the RESULT your product and/or service produces?
- WHO will best benefit from that result and why?
- How can you DEMONSTRATE the result to them?
If you’re struggling with sales, it’s because you have not properly addressed those 3 questions.
A sales person can only close a deal with what they have. If a prospect arrives on a call with no reason to trust you, they will only judge you on price.
It’s unreasonable to put a sales person in a weak position like that.
What can you do to be a Rolls Royce in your niche?
Interview existing clients to create success stories for new clients to read.
How you conduct those interviews… And the stories you get out of them will determine how much you’ll charge.
The better your stories the more you’ll charge.
And if you do these stories for long enough…
You’ll start to know who you really are as business.
Your business will become a story in its own right. A story that disqualifies people you don’t want to do business with. And attracts people that can afford your prices.
That’s what will make you a Rolls Royce in your niche.
Before I go I want you to understand this….
Your business doesn’t shape your market. The market shapes your business.
Rolls Royce did not set out to be the ultra-luxury brand it is today. It only evolved in response to customer demands.
So never stop doing case studies on your happy clients. Because it’s through these case studies that you get to know what’s working. And what could be better.
‘Could be better’ usually means creating new offers to meet demand. This is the hidden power of a case study that’s done right.
Thanks for reading this.
Amir Nviri.
Ready to give your sales team a fighting chance?
